Crude oil prices in global markets fell for a fifth consecutive trading day, with West Texas Intermediate for October delivery down 2.28 dollars, or 2.38%, to 93.50 dollars a barrel, and Brent crude for November delivery down 1.56 dollars, or 1.55%, to 98.78 dollars a barrel. The decline followed reports that Saudi Arabia will reopen the East-West Pipeline as soon as this week. The pipeline has already begun pumping oil at a low rate and may resume oil exports through the Yanbu port on the Red Sea coast as early as today. Saudi Arabia shut the pipeline after it was damaged in a drone attack from Iraq on September 10, and the line plays a key role in diverting crude oil export routes to the Red Sea, while the Strait of Hormuz remains closed due to the war between the United States and Iran. Oil prices were also pressured by reports that President Donald Trump is ready to negotiate with Iran and that the United States will not strike the Houthis. Meanwhile, investors are watching the United Nations General Assembly in New York, which Iranian President Masoud Pezeshkian is scheduled to attend, and Trump has said he is open to meeting the Iranian leader at the gathering.
Restart of Saudi East-West Pipeline exports via Yanbu adds supply back to the market, weighing on Brent.
Saudi Arabia reopening the damaged East-West Pipeline restores crude export capacity, easing supply and pressuring WTI.
